In a ressesion, the defict will go up. There is less money for the government to collect. Add to that the "Bush Tax Cuts" and there is even less money. Obama could have gotten rid of the Tax Cut and lowered the deficit, but he chose (the more wise path IMO) to keep it in place (for now). Spending under Obama is actually pretty similar to Bush. There is just less money being collected...

As someone who makes games for kids for iOS devices I can say business is booming. One of our games Prize Machine (check it out if you wish - http://itunes.apple.com/us/app/prize-machine/id377663033?mt=8) has had over 125,000 downloads in the past few months. I don't of any other delivery vehicle where 2 guys in a garage could get that kind of exposure with a $0 marketing budget.

I feel bad for the guys at Junction Point, I knew many of them and have worked with most of the core guys, but the world is changing. Big box games are going to be rarer and rarer.